S&P 500 component Brown & Brown is Wednesday's IBD Stock Of The Day as the insurance broker homes in on a buy point with analysts predicting another year of profit and revenue growth.
Brown & Brown is the sixth-largest independent insurance brokerage in the U.S. The Daytona Beach, Fla.-based company offers personal insurance lines — including home, auto, recreational vehicle and flood coverage. In October 2024, the company announced it acquired assets from The Canopy Group, which specializes in personal lines and commercial property and casualty for small businesses in Minnesota.
The insurance broker on Jan. 27 closed the book on 2024 with better-than-expected Q4 earnings and revenue. The S&P 500 company saw quarterly profit grow 48% with sales increasing 14.5%. Analysts expect 2025 both earnings and revenue to expand 9%, according to FactSet.
Meanwhile, insurance giant Progressive on Wednesday announced its January results. William Blair analyst Adam Klauber noted that Progressive's January sales suggest the company is "well on its way" to 2025 EPS coming in above $15, with "greater upside potential." Analyst consensus pegs Progressive 2025 profit coming in at $14.51, representing 3% growth vs. 2024, according to FactSet.
"Despite Progressive having a very strong run in 2024, January results indicate that there is room for further growth in 2025," Klauber wrote Wednesday.
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S&P 500: BRO Stock Performance
Brown & Brown shares edged up 0.7% to 112.25 during stock market action on Wednesday.
The S&P 500 insurance broker stock has a traditional 114.15 buy point from a cup base, according to MarketSurge chart analysis. Shares are about 2% below that entry as of Wednesday's stock market trading.
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Aggressive investors could have used BRO stock's short-term high of 109.06 as an early entry, but now it is probably prudent to wait for the traditional 114.15 buy point, according to chart analysis.
The 16 stocks in the IBD-tracked Insurance-Brokers industry group are collectively up 5.8% so far in 2025. BRO shares in 2025 have advanced 8%, after jumping 43% last year.
At the end of January, RBC Capital analyst Scott Heleniak raised the firm's price target on Brown & Brown to 120 from 118. Heleniak noted that the company's organic growth trends remain strong and that overall new business trends remain healthy.
Bank of America also raised its price target on Brown & Brown to 117 from 116, maintaining a neutral rating on the S&P 500 stock. The analysts wrote that the price target is "rising modestly in line with higher forecasts."
Meanwhile, Progressive stock edged up 0.7% to 265.89 in Wednesday's stock market, about 2% below a 270.62 cup base buy point.
Brown & Brown has a 92 Composite Rating out of a best-possible 99. The S&P 500 stock also has a 78 Relative Strength Rating and a 95 EPS Rating.
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